11  The Principal of Right Action

OUTLINE STAGE

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11.0.1 1. Opening (2 pages)

  • State the premise: leadership isn’t just about execution; it’s about conscience.
  • Frame the problem: executives live in gray.
  • Make it clear: this isn’t a license to skirt the law — it’s about leading inside the gray zones.

11.0.2 2. Law: Binding but Not Sacred (2–3 pages)

  • Laws are written by humans, flawed, sometimes bad.
  • Anecdote: bad law removed via influence. Legitimate but unsettling.
  • Point: follow the law absolutely while it exists — but don’t revere it. Change it if you can, reasonably and with conscience.

11.0.3 3. Regulation: Interpretation Rules (3–4 pages)

  • Regulator’s interpretation is reality.
  • Knowing “the regulator’s mind” requires investment: compliance staff, consultants, relationships.
  • If company won’t invest, the exec must do it themselves.
  • Lesson: leaders must insist on this investment (or do the work themselves) if scrutiny is likely.

11.0.4 4. Company Standards: Appetite for Risk (2–3 pages)

  • Companies choose how close to the line they operate. Some upright, some shady, some scummy.
  • As a leader, align with it or walk.
  • Lesson: rationalizing misalignment corrodes integrity faster than leaving.

11.0.5 5. Personal Line: Your Conscience (2–3 pages)

  • Your moral compass runs parallel to, but independent of, law/reg/company.
  • Ideally stricter, never looser.
  • Tested rarely, but decisively. When tested, you either spend capital or walk.
  • Include “shadow side of influence” as the cautionary example: what’s legal may still feel wrong.

11.0.7 7. CEO Call-out Sidebar (1 page)

  • If your CTO always says yes, worry.
  • Push them to define and defend their line.
  • Don’t punish them for walking if their line is crossed — that means they were doing their job.

11.0.8 8. Closing Reflection (1 page)

  • Reiterate: laws are not sacred, regulators interpret, companies choose, individuals decide.
  • There are no “laws” here, only the practice of judgment in gray.
  • Right action is less about perfect clarity and more about living with the story you choose to tell.